Pre-Authorisation

A pre-authorisation is the mechanism behind the security deposit. The rental company asks your bank to ring-fence a set amount on your card, proving the money is there, but it is never moved into their account unless they later need to make a charge.

On your statement it shows as a pending transaction that lowers your available balance. Because the funds are frozen rather than spent, a card with a low limit can be maxed out by the hold alone, leaving little room for other spending during the trip — worth planning for.

When you return the car undamaged, the company releases the hold. The catch is timing: banks can take a few days, occasionally up to two weeks, to free the money back into your balance. That delay is the bank’s, not the rental company’s.

A credit card handles this far better than a debit card, because the hold sits against your credit limit rather than your real cash. Some agencies will not accept debit cards for the deposit at all.